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Good. The rule is stupid and deserves to be worked around. Water is essential. I hate when I go to these kinds of public places and they give you no option to get water other than bringing it yourself. Poor logistics on the part of the event organizers.
The official reason for such rules are usually “we need a mix of vendors” or something like that.
The unofficial, true reason is usually that the organizer wants to be the only one selling water so they can sell it for $5.